Allstate

The losses were below May’s $777mn, but almost 3x higher than for June 2024.

The bond will provide protection for Allstate’s Florida subsidiary, Castle Key.

The carrier surpassed the retention on its annual aggregate reinsurance cover for the year to March 31.

The carrier estimated January cat losses of $1.08bn, or $849mn after-tax, including the fires.

The bond provides coverage for storms, earthquakes and severe weather events.

The carrier has been reducing its presence in the state since 2007.

Fifteen events caused estimated losses of $306mn.

Investors may be able to recoup between $15mn-$18mn of principal.

Total catastrophe losses stemmed from 20 events and were estimated at $587mn.

This takes pre-tax year-to-date cat losses to $2.62bn.

This takes pre-tax cat losses for the calendar year to $1.23bn

Sanders Re cat bond coverage attaches higher than last year at $5.46bn.

This follows February’s cat losses coming in below the $150mn reporting threshold.

The multi-peril coverage was due to expire in June 2026.

This follows January pre-tax cat losses of $276mn.

Cat losses grew by 81.5%.

Monthly cat losses were driven by two major events.

Unfavorable prior year reserve re-estimates, excluding catastrophes, totaled $199mn in Q4, with approximately $148mn related to personal auto, including costs for litigation claims.

Earlier today, the insurer updated the spread on the cat bond which has settled at 5.75%, and updated the target price to $300mn-$350mn.

Allstate increased the target size of the bond to $300mn-$350mn, up from $200mn.

Sanders Re III will provide coverage for the District of Columbia and all US states apart from Florida.

Most of the losses, around 80%, were the result of two wind and hail events.

Total losses for the year from April now exceed $3.5bn.

Investors will have to wait an additional three years for collateral to be returned.

Allstate reported cat losses of $1bn and $885mn for June and May.

The downgrades reflect the negative impact of challenging macro-economic trends on underwriting results and risk-adjusted capitalization.

The carrier’s Florida reinsurance tower’s top layers comprise a total of $450mn in Class A Sanders Re cat bond coverage.

Nearly $148mn of the unfavorable reserve development was related to National General, primarily driven by personal auto injury coverages.

The carrier said 70% of the claims stemmed from two wind and hail events.

The deal will protect against named storm, quake, severe weather event, fire, volcanic eruption or meteorite impact in Florida.

The loss for the month was 60% comprising losses from two wind and hail events.

The carrier shifted retentions up and made use of multi-year contracts.

The Class B notes upsized by $25mn to $175mn, while the higher-risk Class C zero-coupon notes were not placed.

The carrier is seeking ex-Florida coverage for named storm, earthquake, severe weather, fire, volcanic eruption or meteorite.

Allstate disclosed a $211mn catastrophe loss in February based on nine separate events.

The carrier’s equivalent bond placed last March secured $550mn of limit.

This takes its ex-Florida cat losses since the start of its reinsurance annual risk period in April above $2bn.

The market is characterised by rising prices and shrinking deal sizes as investors pick and choose over which bonds to back.

The carrier had earlier expanded its hoped-for range to $100mn-$125mn.

The bond has also expanded its range to target up to $125mn.

The bond will provide the carrier with five years’ coverage for named storms across the US excluding Florida.

The firm disclosed that ex-cat unfavorable prior year reserve reestimates totaled $875mn, of which $643mn were related to its personal auto unit.

Allstate CFO Mario Rizzo vowed to continue pushing through auto rate increases.

The company also said it expects a $408mn reserve charge, including $275mn related to personal auto and $91mn recorded for commercial auto.

The carrier’s below-FHCF layer is 29% unplaced.

The losses were caused by 14 events, most notably wind and hail in Texas, the Midwest and Canada.

The second Sanders Re issuance this year takes total cover raised by the insurer to $837.5mn.

The figure includes around $17mn of unfavorable reserve re-estimates for prior period events.

The US nationwide has placed $550mn of nat cat risk into the cat bond market already this year.

The 2022 reinsurance program will support cat losses exceeding $2.5bn, compared to $2bn in the corresponding period last year.

The company announced net retained catastrophe losses of $462mn.

The pricing has settled at the mid-to-top end of guidance across the three tranches.

This is Allstate’s first entry to the cat bond market in 2022.

The firm’s 2020 edition cat bond has also lost $3.2mn.

The firm took $411mn of losses in December, up 940.5% year-on-year, but losses since April are still below the aggregate attachment of its latest Sanders Re deals.

Spreads on the deal’s two reinsurance layers will be at the upper and lower end of coupons Allstate has offered on the cat bond market.

Allstate is offering its second Sanders Re catastrophe bond for the year, sized at $350mn across two tranches of notes, in its first ILS transaction with an element of aggregate risk since making a major claim earlier this year.

The insurer will recoup $986mn from its reinsurers in relation to Q3 cats, of which $689mn stems from Hurricane Ida.

The carrier also signalled unfavourable reserve developments linked to asbestos and environmental exposures.

The insurer’s net monthly cat losses reached $876mn.

Excluding prior-period reserve charges, the Illinois-based company estimated total cat losses at $211mn from 18 events.

The insurer will recoup $253mn from the Sanders Re aggregate bond, up 30% from the Q1 level forecast, but traditional treaty recoveries have fallen significantly.

Catastrophe losses for the month fell to $195mn, a sharp drop from the prior year’s $752mn.

The figure was significantly down on the prior month’s $544mn, and also came in 39% below the year-ago loss tally.

The deal’s spread settled at 350 basis points, down 12.5% from its initial mid-point target.

The insurer is seeking occurrence cover on the latest deal after notifying investors of a recent aggregate cat bond claim.

The monthly tally came in 14% lower than the $632mn reported a year ago.

Less than a month ago, the insurer said it would recover $184mn of losses from an earlier Sanders Re deal.

In total, the changes will lift the exhaustion point on its reinsurance by $779mn from last year, although some gaps remain as its cat bond recovery rose to $195mn.

The insurer offset $1.08bn of Q1 cat losses with reinsurance recoveries and subrogation payouts in total.

The insurer will also recover from its per-occurrence tower, recouping roughly $700mn of its gross losses from the winter storm.

Markdowns have wiped more than $220mn off the value of $1.6bn of aggregate cat bonds benefitting major US insurers after the Texas Big Freeze.